‘Black Swan’ Author Nassim Taleb Advises to Stay Out of Bitcoin, Citing No Link to Inflation or ‘Anything Economic’ – Markets and Prices Bitcoin News

by Gordon James

Nassim Nicholas Taleb, renowned author of Black Swan, believes investors should not buy bitcoins. To hedge against the current market turmoil, he recommends buying stocks or real estate, noting that bitcoin is not related to inflation or anything else economic.

Nassim Taleb advises against investing in bitcoin

Nassim Nicholas Taleb, the famous author of Black Swan, shared his thoughts on bitcoin and how to protect yourself from the current turmoil in the market in an interview with CNBC on Friday. Mr. Taleb is a Lebanese-American scientist, mathematical statistician, former options trader and risk analyst.

He was asked about cryptocurrencies, particularly bitcoin, as investors increasingly restructure their portfolios with the asset class. As for bitcoin, it has the makings of an open Ponzi scheme. Everyone knows it’s a Ponzi scheme, he says, adding:

Basically, there is no correlation between inflation and bitcoin. No. You can have hyperinflation and bitcoins suck. There’s no connection between them.

Taleb acknowledged that bitcoin is a fine cryptographic system, but insisted that while it is well constructed, there is absolutely no reason to tie it to anything economic.

If you want to protect yourself from inflation, you should buy land, he advised, adding that you can grow olives on it. You’ll have olive oil. He continued: Of course, the best strategy for investors is to own properties that will produce income in the future.

While a number of analysts support Taleb’s theory that bitcoin is not an inflation hedge, some believe otherwise. Investment bank Goldman Sachs said last December that bitcoin is an inflation hedge for individuals, noting that it is replacing gold as the inflation hedge of choice. British investment management firm Ruffer has written that bitcoin serves as a hedge against some of the currency and market risks we see. Deutsche Bank noted that there seems to be a growing demand for the use of bitcoin, where gold was used to hedge dollar risk, inflation and other issues.

Concluding Friday’s interview on hedging risk in today’s market, Taleb said: Stay away from bitcoin. Buy stocks that are stable and buy things you understand. He also recalled that investors can also buy land and grow something on it, as in the previous example of olives.

The famous author was originally a supporter of bitcoin and believed that BTC could be used as a currency. However, when he saw that the price of bitcoin was very volatile and that investors were using the crypto currency as a speculation tool, he started selling his bitcoins and called them a failed currency.

What do you think of Nassim Taleb’s advice on Bitcoin? Let us know your comments in the section below.

Photo credit: Shutterstock, Pixabay, Wiki Commons

Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of a product, service or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.

Related Tags:

nassim taleb bitcoinnassim taleb bitcoin twitternassim taleb bitcoin mediumnassim taleb net worthnassim taleb bitcoin booknassim taleb twitter,People also search for,Privacy settings,How Search works,nassim taleb bitcoin,nassim taleb bitcoin twitter,nassim taleb bitcoin medium,nassim taleb net worth,nassim taleb bitcoin book,nassim taleb twitter,nassim taleb ethereum,nassim taleb books

Related Posts